ACC 310F Study Guide - Quiz Guide: Budget, Sales Operations, Sales Promotion
Document Summary
Describe the benefits of budgeting and essentials of effective budgeting that will best help you achieve these benefits. Link individual budgets together to form an organization-wide plan and construct forecasted financial statements. Budgets, whether personal or organizational, ensure there is money in place to carry out an activity with scarce resources (money and employee time) We budget when we want a loan or an investment from an outside organization. Forecasted financial statements = a formal plan for how we intend to use their resources. Lesson 1: benefits & essentials of effective budgeting. Planning = the process of establishing company-wide objectives. A budget is a formal written statement of management"s plans for a specified future time period, expressed in financial terms. represents the primary method of communicating agreed-upon objectives throughout the organization. Once adopted, a budget becomes an important basis for evaluating performance. From the accounting records, companies can obtain historical data on revenues, costs, and expenses.
